Oracle in Insurance
Oracle in Insurance
Agenda
Oracle in Insurance
the big challenge is now to double our effort and focus on operational excellence and growth. -- James Schiro, CEO, Zurich Financial Services, January 2006
How can my organization meet increasing national and regional insurance department regulatory compliance demands?
In early 2005, the four largest brokerage firms negotiated regulatory settlements concerning, among other things, their compensation practices. Following their settlements, some firms altered their long-standing practices and restructured their operations. - HRH 2005 Annual Report
How can I improve combined ratios while providing greater value to our customers and still achieve continuous growth?
A chasm is growing between insurers using state-of-the-art analytics and those who arent The haves will be able to write business at the margins they target. The have nots will fall victim to adverse selectionthe bar will rise continually as competition drives weaker players from the field. -- Frank J. Coyne, chairman, president and CEO, ISO - ISOtech, 2006
Industry Quotes
Oracles Siebel Insurance Claims is an interesting choice for a mid-size to large insurer. It represents a combination of basic and extended claims functionality-extended with Siebel and Oracle components. It also brings a good deal of prepackaged functionality, with rules,scripting, and performance reporting capabilities. Donald Light, Insurance Analyst
"They (Oracle) have been very acquisitive in the last couple years, It's a good move for Oracle, buying both PeopleSoft and Siebel, in that it does give them that vertical presence.
Marc Cecere , VP Insurance Practice
Oracles PeopleSoft Enterprise General Ledger provides an established, well developed set of capabilities within a broad and deep family of other accounting, financial, human resource, and supply chain applications.
Donald Light, Insurance Analyst
Agenda
Core Systems
Increase Revenue through Distribution Management and Customer Service Enable Flexible and Efficient Policy Lifecycle Management Improve Corporate Governance through BI and ERM Provide Efficient and Effective Operational Support Enable Next Generation Insurance Technology Platform
Oracle Capability
Oracles Siebel Insurance Partner Management
Example:
Distribution Management
Oracles Siebel Insurance Oracle Siebel Call Center Oracles Siebel Marketing Analytics
Web Services
Siebel Marketing
Customer Segmentation Program Management Channel Marketing Results Tracking
CHALLENGES / OPPORTUNITIES Overwhelmed with paper Outmoded, paper-based sales processes hindered effective management of sales opportunities Wanted to improve consistency and quality of customer service
CUSTOMER PERSPECTIVE One customer was delighted recently when, having submitted a claim online, he received a call from one of our agents a few hours later to correct an error made on the form. It is instances like this that seal our reputation for outstanding customer service. Johan Reyneke, Managing Director RESULTS Reduced time to transfer leads from bank to brokerage from 3 days to seconds Increased penetration for home insurance from 15% to 65% Increased penetration for motor insurance from 18% to 40% Enabled accurate, near time forecasting Provided a single, 360-degree view of customer relationships to 200 sales staff and 45 customer service reps
Core Systems
Increase Revenue through Distribution Management and Customer Service Enable Flexible and Efficient Policy Lifecycle Management Improve Corporate Governance through BI and ERM Provide Efficient and Effective Operational Support Enable Next Generation Insurance Technology Platform
Oracle Capability
Oracles Policy Admin System for Life, P&C, and Reinsurance
Oracle Insurance Billing, EBS Financials, PSFT Financials, FSAH BPM, BEPL, Business Process Analysis Suite, Content Services, Identity Mgmt, App Server
Example:
Web Services
Sales Process Mgmt New Business Rapid Product Rollout Processing Sales/Partner Credentials Policy Issue Book of Business Cycle Processing Flexible policy rules Financial Integration
Example:
Web Services
PeopleSoft Financials
Claims Reserve Accting Financial Reporting Claims Performance Payment & Fulfillment
Motorists Mutual
COMPANY OVERVIEW Headquartered in Ohio Revenue of US $1.5B CHALLENGES / OPPORTUNITIES Information scattered across 28 apps resulting in lengthy claims resolution Consolidating data from disparate systems - including claims, billing, and policy-management systems - would provide claims unit with a single, real-time view of customers claims file and enable increase in process automation SOLUTIONS Oracle Siebel Claims Implemented in claims center with 250 claims specialist and managers Used to manage end-to-end claims process from FNOL, to adjuster assignment to subrogation and legal CUSTOMER PERSPECTIVE We have seen about $1 million in annual expense reduction as a result of Oracles Siebel Claims Implementation. Some of the benefits or our implementation are reduce staff, leakage, paper and improve agents productivity. Dave Kaufman, Senior VP and CIO
RESULTS Realized substantial productivity gains Reducing process expense (ongoing) Closed a branch office and reduced facilities expense
Core Systems
Increase Revenue through Distribution Management and Customer Service Enable Flexible and Efficient Policy Lifecycle Management Improve Corporate Governance through BI and ERM Provide Efficient and Effective Operational Support Enable Next Generation Insurance Technology Platform
Improve Corporate Governance through Business Intelligence & Enterprise Risk Mgmt
Requirement
Provide Actionable Customer & Product Profitability Insight
Oracle Capability
Customer & Product Profitability Engine (EPM, OFSA)
Be the Foundation for Regulatory Compliance to Meet State & Federal Regulator Needs
BPEL, BPM, Internal Controls Manager, ICE, Stellent Content Mgt, Financial Services Accounting Hub
Oracle Delivers the Most Comprehensive Platform for Deployment of Transparent, Auditable and Bulletproof Insurance Processes
Example:
Databases
BI Dashboards
Analytics Server
CHALLENGES / OPPORTUNITIES Has seen significant growth in the online car insurance market and has responded by expanding its range of products and services Effective asset and liability administration is essential in Koreas fluctuating business environment
Core Systems
Increase Revenue through Distribution Management and Customer Service Enable Flexible and Efficient Policy Lifecycle Management Improve Corporate Governance through BI and ERM Provide Efficient and Effective Operational Support Enable Next Generation Insurance Technology Platform
Oracle Capability
PeopleSoft Human Capital Mgmt, EBS Human Resources Mgmt, Learning Management
Manage Statutory and GAAP Environments to Support Global Insurance Reporting Requirements
Oracles Unique Offering Can Help Insurers Manage Multiple Financial Environments and Multi-Point Admin System Integration
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Example:
General Ledger
Subledger Accounting
Receivables
Oracle Procurement
Reduce Spend on Goods and Services Streamline Procurement Enforce Policy Compliance
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COMPANY OVERVIEW Headquartered in Zurich, Switzerland Revenue: CHF 100 million Employees: 9,000 CHALLENGES / OPPORTUNITIES Lacked an integrated financial package Required huge manual effort to calculate asset depreciation and other key financial measures that make up the expense to premium ratio, critical to insurance reporting and strategic management planning SOLUTIONS Oracle E-Business Suite General Ledger Accounts Payable Fixed Assets
CUSTOMER PERSPECTIVE We are examining our internal processes and developing new ways of thinking. Oracle is playing an important role in that process." Liz Catchpole, CFO, Life & Health Business
RESULTS Reduced manual process and increased direct process controls Instituted automated payment runs Automated expense reporting. Reduced training time and costs for accounting staff Redeployed staff to more strategic activities
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Core Systems
Increase Revenue through Distribution Management and Customer Service Enable Flexible and Efficient Policy Lifecycle Management Improve Corporate Governance through BI and ERM Provide Efficient and Effective Operational Support Enable Next Generation Insurance Technology Platform
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Oracle Capability
Service Enabled Processes and Applications
Secure Customer Data and Access for Risk and Compliance Reporting
Integrated Data and Identity Management for GLBA, Patriot Act and SOX Compliance
Manage Structured & Unstructured Data with Scalable and Reliable Grid Technology
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CHALLENGES / OPPORTUNITIES Needed to provide a more efficient, simplified process to grant policyholders and insurance agents secure access to policy information Manual transactions were time-intensive and raised operational costs
SOLUTIONS Oracle Fusion Middleware-based online portal Implemented with help from Cisco
Oracle
ISV Partners
Partner Management
Customer Service
CPM
Financials
Indirect Procurement
Corporate Administration Facilities Human Management Resources IT Infrastructure Business Activity Monitoring Web Services Management Enterprise Content Management Database [Grid, Memory, Embed]
Projects
Compensation
Helpdesk HR IT
Analytic Services, Portal & Dashboards Business Process Analytics Universal Customer Master (MDM) Systems Management Directory Svcs
Rich Client Framework (AJAX, Web 2.0) Web Services Orchestration (BPEL) J2EE Services, ESB and Rules Engine Identity Mgmt Access Mgmt
ERP, CRM, HR and more Most scalable, reliable, secure infrastructure Most complete range of on-demand and on-premise
deployment options
Applications
Fusion Middleware
Customer focused claims management Real-time insurance fraud detection Insurance analytic dashboards and industry KPIs Closed-loop insurance distribution management End-to-end insurance process support
Database
Agenda
Increased the percentage of requests closed the same day by 20% in 12 months Improved productivity in the claims area by 25% Reduced costs by an estimated US$15.1 million by automating manual tasks and eliminating redundant processes
Governance and Compliance Effective Operational Support Next Generation Technology Platform
Support auditable, automated enterprise business processes Provide detailed financial & operational business insight Deliver actionable customer & product profitability insight Increase agent/broker knowledge & reduce overhead costs Deliver financial results in industry formats Connect Financials to better measure & monitor results Accelerate development of new services with a open
standards based insurance platform Improve agility with capability to create flexible composite applications